passed legislation mediate it USA President joe biden And House Speaker Kevin McCarthy to raise the US debt ceiling of $ 31.4 trillion is an important obstacle late Tuesday (May 30, 2023), as it was approved by the Rules Committee and sent to the full House for discussion and a vote expected on Wednesday.
The committee voted seven to six in favor of the legislation to suspend the debt ceiling until January 1, 2025, allowing lip service And lawmakers postpone this the case Politically risky to post Presidential election in November 2024. It also caps some government spending over the next two years, speeds up the approval process for some energy projects, and returns unused COVID-19 money.
If the Republican-controlled House of Representatives passes the bill, it will pass it on to Mr Senate to discuss it and vote on it as well. Both houses of Congress must pass this legislation before June 5, when the Treasury Department will run out of money and will be unable to pay its debts for the first time in US history. And if the Treasury can’t pay, it could wreak economic havoc on the US and global economies. Such a catastrophic scenario would be unprecedented in the United States and would have repercussions at the global level, if it occurred, according to economists.
In its broad outlines, the agreement provides for raising the public debt ceiling for the United States for a period of two years, that is, until after the presidential elections in 2024. The current ceiling is set at $31,400 billion. The agreement did not include the deep cuts Republicans want, though non-defense spending will remain virtually unchanged next year, increasing only nominally in 2025.
It also provides for a $10 billion cut in tax services money to modernize and strengthen controls, which was a Republican demand, as well as a refund for COVID-19 funds that have not yet been spent. In addition, it will adopt new rules for accessing some federal aid programs.
Both Democratic and Republican leaders have expressed confidence that they will muster the votes needed to eventually pass the text. Details of the settlement were revealed Sunday, giving members of Congress 72 hours to read it in depth. But a vote on it is not a foregone conclusion because the text faces stiff resistance from some members of Congress from both parties.
Conservative Republicans have previously declared their opposition to the agreement, such as Rep. Dan Bishop, who rebuked McCarthy because, in his opinion, he “got almost nothing” in the negotiations. Another Republican, Matt Rosendale, spoke of “an insult to the American people.” On the left, progressive lawmakers have expressed skepticism, such as Ro Kana, who said many Democrats opposed to budget cuts “don’t know yet” how to vote.
M.A.H/H.Z (Reuters, AFP)
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2023-05-31 06:18:46
